9911796707
TMI Blog1983 (6) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... the agency agreement, in pursuance of which payment was made to Vinay Bhasin in the assessment year 1972-73, was genuine, was on the assessee ? " The material facts giving rise to this reference as set out in the statement of case are as follows: The assessee, a registered firm, derived income mainly from wholesale business in cloth at Indore City and from sales outside Indore. In the assessment year 1970-71 the assessee-firm had two partners, Ramlal and Madanmohan. Ramlal's share in the firm was 50% and that of Madanmohan was 25% in profits only. Rajiv, a minor grandson of Ramlal, was admitted to the benefits of the partnership to the extent of 25%. Ramlal died on November 21, 1969. On his death the firm was reconstituted and Ramlal's wid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Tribunal, the assessee sought reference to this court. The application of the assessee for that purpose was dismissed by the Tribunal. The assessee then submitted an application to this court under s. 256(2) of the I.T. Act, 1961, which was allowed. At the direction of this court the Appellate Tribunal has referred the aforesaid question of law for the opinion of this court. We have heard the learned counsel for the parties. The assessee claimed deduction of Rs. 22,398 from its income on account of commission having been paid to Vinay Bhasin. It cannot be disputed that it was for the assessee to prove the fact that the said amount was wholly and exclusively spent by the assessee for purposes of its business. The assessee placed reli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AAC took a superficial view of the entire matter at issue. He lost sight of the fact that the burden to prove the genuineness of the agreements and the payments being wholly and exclusively for business purposes lay on the assessee and there was no material worth the name on the record to justify a finding in that regard in favour of the assessee. " Thus, if the burden to prove the fact that the payment of the amount to Vinay Bhasin was wholly and exclusively for business purposes of the assessee was on the assessee, it cannot seriously be contended that the burden to prove the genuineness of the agreement upon which reliance was placed by the assessee to prove that the payment of commission was wholly and exclusively for business purposes ..... X X X X Extracts X X X X X X X X Extracts X X X X
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